Poor Credit Mortgage – UK Mortgage.. poor credit?
Me and my partner are looking to buy our council property…..
We both have poor credit history , nothing major but would have be in the region of £10,000 (combined)…… these debts are 90% cleared and the rest is being paid regularly… It was just defaults on credit cards, store cards catalogues etc… Neither of us have had CCJs or bankrupt!!
Our council house was valued 3 years ago and was £103,000, we were offered the house at £76,000 but were declined a mortgage from the 1 and only lender that we looked into!
We would be looking at borrowing an extra £20-£30,000 for an extension etc… We have NO deposit..
I am self employed (part time) and earn estimated £10,000…. my partner is employed and earns £26,000 per year… We have 3 children who we are finacially dependant for.
What are the chances of us getting a mortgage and from which brokers???
I suggest you ask the Council for Mortgage advice …
Most Councils are well aware that many people trying to buy their Council Houses have both poor credit and low income – and many have made special arrangements with specific Mortgage Lenders for ’social’ loans ..
Under normal circumstances you could expect to be offered a Mortgage of at least 3 times your joint income .. i.e max. 3 x £36,000 = approx £100,000 so you should have no problems here .. and your ‘LTV’ (Loan To Value) is only about 75% (i.e. you are paying approx £75k for approx £100k house) so you have an ‘effective’ deposit of 25% (£25k) ..
So what must be putting off the lender is your Credit Rating .. and here is where the Council can help ..